PUC 'S (CPUC) APPROVAL OF EDISON/CALPINE SETTLEMENT LEADS CALIFORNIA TOWARDS ANOTHER STEP TOWARD STATE'S RENEWABLE ENERGY AND RESOURCE ADEQUACY GOALS

SAN FRANCISCO, November 16, 2007 - The California Public Utilities Commission (PUC) today approved a settlement agreement between Southern California Edison, Calpine Energy Services, and Geysers Power Company that, among other things, approves a Power Purchase and Sale Agreement for 225 megawatts (MW) of geothermal power and 714 MW of Local Resource Adequacy (Local RA) capacity. The new agreements replace the last year of an existing power purchase agreement for renewable power and Local RA capacity between the parties. In addition, the new agreements add an incremental 25 megawatts of renewable capacity and 514 MW of Local RA capacity and extend the two agreements another 3-10 years. The renewable power agreement is equivalent to about 2.35 percent of Edison's forecasted 2010 retail sales and will contribute to the statewide target of 20 percent renewables by 2010. In addition, the Local RA capacity agreement will contribute to Edison's System and Local RA obligations. The table below provides a brief explanation of the Geysers and Pastoria projects

The new power purchase agreements were negotiated in part from Edison's 2005 renewable energy solicitation and in part as a result of Calpine's attempted rejection of the existing Power Purchase Agreement in its bankruptcy proceeding. The approval of the entire settlement will resolve a motion filed by Calpine in Bankruptcy Court to reject the existing power purchase agreement. In addition, the PUC's approval of the settlement and underlying Renewables Portfolio Standard and Resource Adequacy agreements represent an important step towards Calpine's emergence from bankruptcy, expected either by the end of 2007 or in the first quarter of 2008.

The PUC's Renewables Portfolio Standard Program requires investor-owned utilities, Energy Service Providers, and Community Choice Aggregators operating in California to obtain 20 percent of their retail sales from renewable energy sources by 2010; the PUC's Resource Adequacy program requires the same companies to purchase sufficient generation capacity to meet their forecasted peak load with planning reserves including requirements to purchase capacity within transmission constrained Local Areas.

The proposal is available at

http://docs.cpuc.ca.gov/PUBLISHED/COMMENT_RESOLUTION/74250.htm.

Tags: Renewables Portfolio Standard Program.RPS, PUC, CPUC, Southern California Edison, Calpine Energy Services, Geysers Power Company

PG&E and Ausra Announce 177 Megawatt Solar Thermal Power Agreement

PG&E earlier this month announced that they will be teaming with Ausra Inc., to build a plant to be located in San Luis Obispo County in California that will generate 177-megawatts of solar thermal power capacity. The facility is slated to go online in 2010. Ausra has filed its Application for Certification for this plant with the California Energy Commission, which must grant approval before construction begins. The project will use Ausra’s Compact Linear Fresnel Reflector technology to create steam that will power steam turbine generators.

News Release;

SAN FRANCISCO, Calif.—Nov. 5, 2007—Pacific Gas and Electric Company today announced that it has entered into a 177 megawatt solar thermal power purchasing agreement with Ausra Inc. The project, to be located in central California, is being developed by Ausra.

"Today's agreement between PG&E and Ausra highlights how clean energy will create jobs in California while delivering a reliable source of renewable energy," said Governor Arnold Schwarzenegger. "I'm pleased to see California companies rising to the challenge of AB 32, California's historic initiative to reduce carbon emissions and combat climate change. Clearly, California continues to lead the nation in clean energy research, development and generation."

The plant, to be located in San Luis Obispo County, Calif., is expected to begin generating power in 2010. Ausra has filed its Application for Certification for this plant with the California Energy Commission, which must grant approval before construction begins.

"Solar thermal technology provides our customers with a reliable source of clean renewable energy that is ideally suited to meet peak energy loads," said Fong Wan, vice president of energy procurement, PG&E. "By partnering with Ausra, we are taking another significant step in providing our customers with some of the cleanest energy in the nation."

Ausra projects that the power plant will create over 350 skilled jobs on-site during construction, and an additional 100 permanent jobs in the area. The plant will burn no fuel, use minimal water, and have no air or water emissions. At 177 megawatts of capacity, the project will use only one square mile (640 acres) of land due to the exceptional area efficiency of Ausra's collector technology.

"This 177-megawatt plant is the first manifestation of Ausra and PG&E's shared vision of competitively priced, large-scale solar electric power," said Glen Davis, executive vice president and chief commercial officer of Ausra. "We're excited to be partnering with PG&E to deliver clean power at hours of peak demand."

Ausra's new Compact Linear Fresnel Reflector (CLFR) solar technology utilizes the heat from the sun's rays to create steam. Solar collectors boil water at high temperatures to power steam turbine generators, in much the same way as traditional fossil-fuel power plants, but without use of fuels or emissions.

At the Clinton Global Initiative annual meeting in September, PG&E and Ausra announced separate commitments to build and purchase 1,000 MW of solar thermal power over the next five years.

The agreement filed today with the California Public Utilities Commission is the latest example of PG&E's commitment to solar thermal technology. PG&E currently has 553 MW of solar thermal power under contract and is seeking regulatory approval of these purchasing agreements.

PG&E's solar thermal commitments are part of the company's broader renewable energy portfolio. PG&E currently supplies 12 percent of its energy from qualifying renewable sources under California's Renewable Portfolio Standard (RPS) program. PG&E continues to aggressively add renewable electric power resources to its supply and is on target to exceed 20 percent under contract or delivered by 2010. On average, more than 50 percent of the energy PG&E delivers to its customers comes from generating sources that emit no carbon dioxide, providing among the cleanest energy in the nation.

California's RPS Program requires each utility to increase its procurement of eligible renewable generating resources by one percent of load per year to achieve a 20 percent renewables goal by 2010. The RPS Program was passed by the Legislature and is managed by California's Public Utilities Commission and Energy Commission.

For more information about Pacific Gas and Electric Company, please visit the company's website at www.pge.com. and Ausra Inc., at www.ausra.com

Tags: solar thermal power, California Solar Initiative, renewables, Renewable Portfolio Standard, RPS, PG&E, PUC, Clinton Global Initiative, AUSRA, Compact Linear Fresnel Reflector, CLFR

Sunny California has a new meaning and a view

Californians bask in solar energy from PhysOrg.com

Soaring energy costs, environmental consciousness and financial incentives have combined to make solar panels part of the California housing landscape.

[...]

How Cash back for Solar works in California.

If you are a Californian, there are incentives for you to turn your home in to a Solar Generator! Aka self sustained house. California State initiative, works in a wonderful ways to turn your interest toward converting your house in to a solar power house.
I urge all the states that could benefit from Solar energy to adopt a similar initiatives. Let's go beyond the American Borders, let's introduce such measures all over the world.

The California Solar Initiative Offers:

• Photovoltaic incentives starting at $2.50 per watt for systems up to one megawatt in size.


• Funds for solar installations for existing and new low-income and affordable housing.


• A pay-for-performance incentive structure to reward high-performing solar projects.

The California Solar Initiative will be coordinated with the state's energy efficiency, "smart" metering, and building standards programs at the Public Utilities Commission and Energy Commission, ensuring that the state is using its energy resources wisely.

The above is true if you act before the year ends. There is a new way based on Public Utilities Commission (PUC) of California that will change the incentive payment criteria.

• Starting January 1, 2007, incentives for all solar energy systems greater than 100 kilowatts in size will be paid monthly based on the actual energy produced for a period of five years. This incentive is called Performance Based Incentives, or PBI.


• Incentives for all systems less than 100 kilowatts will initially be paid a one-time, up-front incentive based on expected system performance. Expected performance will be calculated based on equipment ratings and installation factors, such as geographic location, tilt, and shading. This incentive structure is called Expected Performance-Based Buydown, or EPBB.


• Starting in 2010, incentives for all systems greater than 30 kilowatts in size will be paid based on actual energy produced.

CPUC Administration of the California Solar Initiative

On March 2, 2006, the CPUC opened a proceeding to develop rules and procedures for the California Solar Initiative and to continue consideration of policies for the development of cost-effective, clean and reliable distributed generation (DG). On August 21, 2006, the Governor signed Senate Bill 1 (SB1), which directs the CPUC and the Energy Commission to implement the CSI program consistent with specific requirements and budget limits set forth in the legislation.

The PUC has a rulemaking in progress to reconcile its decisions with SB1, and it also continues to hold public workshops to continue designing program elements. Contact the CPUC to learn how to provide your input in these decisions.

Current incentives provide an upfront, capacity-based payment for a new system. The CSI incentive system will change in 2007 when it moves to performance-based payments. In its August 24, 2006, decision, the CPUC shifted the program from volume-based to performance-based incentives and clarified many elements of the program's design and administration.

There is also a FAQ page that will answer most of your questions.

Links;

Cash Back For Solar

Cash Back for Solar FAQ

Tags: Cash Back For Solar, Solar Generator, California Solar Initiative, Public Utilities Commission, PUC, Energy Commission, Performance Based Incentives, Cash Back for Solar FAQ